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Mild price gains for gold, silver ahead of Powell speech

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(Kitco News) - Gold and silver prices are slightly up in early U.S. trading Tuesday. The precious metals markets are pausing just ahead of a highly anticipated speech by Federal Reserve Chairman Jerome Powell. April gold was last up $2.60 at $1,882.30 and March silver was up $0.048 at $22.285.

The focal point of the marketplace today is a midday speech to an economics club in Washington, D.C. by Fed Chairman Jay Powell. Traders and investors are anxious to see what Powell has to say after last week’s surprisingly strong U.S. jobs report that many believe could force the Fed to remain hawkish on U.S. monetary policy for longer. A Barron’s headline today reads: “Markets may have misread Powell last week.” That story suggests the marketplace focused too much on Powell’s disinflation comments and not enough on Powell’s remarks that more work needs to be done to tame inflation.

Global stock markets were mixed overnight. U.S. stock indexes are pointed toward narrowly mixed openings when the New York day session begins.

There is little the Fed can do to bring down inflation and that will be good for gold - MarketGauge's Mish Schneider

The key outside markets see the U.S. dollar index a bit higher on a continued rebound from last week’s nine-month low. The yield on the benchmark U.S. 10-year Treasury note is presently fetching 3.642%. Meantime, Nymex crude oil futures prices are up and trading around $75.25 a barrel.

U.S. economic data due for release Tuesday includes the weekly Johnson Redbook and chain store retail indexes, the international trade report, the IDB/TIPP economic optimism index. President Joe Biden also delivers his State of the Union address Tuesday evening.

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold futures bulls still have the overall near-term technical advantage but have faded. A three-month-old price uptrend on the daily bar chart has been negated. Bulls’ next upside price objective is to produce a close in April futures above solid resistance at the February high of $1,975.20. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,850.00. First resistance is seen at this week’s high of $1,894.00 and then at $1,900.00. First support is seen at this week’s low of $1,873.20 and then at $1,850.00. Wyckoff's Market Rating: 6.0

Live 24 hours silver chart [ Kitco Inc. ]

The silver bulls have the slight overall near-term technical advantage but have faded badly and need to show fresh power soon to keep their edge. Silver bulls' next upside price objective is closing March futures prices above solid technical resistance at $23.50. The next downside price objective for the bears is closing prices below solid support at $21.00. First resistance is seen at this week’s high of $22.635 and then at $23.00. Next support is seen at this week’s low of $22.17 and then at $22.00. Wyckoff's Market Rating: 5.5.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.